Credit score 'key barrier to obtaining cheap mortgages'

Those looking for cheap mortgages often find that their credit scores are a significant barrier, it has been claimed.

Kensington has published research showing that 43 per cent found that this was the biggest obstacle for those looking to obtain a large mortgage.

Those who were self-employed also struggled to obtain funding, with 37 per cent of mortgage intermediaries saying they had clients who were struggling on this basis.

One in three highlighted poor availability of mortgages for £500,000 or over, while a quarter stated that lenders had excluded a significant bonus or commission from their affordability calculations.

Alex Hammond, PR, brand and communications manager at Kensington, highlighted the fact that high earners looking for cheap mortgages rarely have straightforward financial circumstances.

He said: "Many will be business owners and even where this is not the case, total income is often made up of commission, bonus or investments. A one-size-fits-all approach does not suit these customers."

Earlier this month, Ash-Ridge Asset Management mortgage advisor Jane King told BBC Money Box that fixed-rate mortgage deals can be ideal for those who are able to commit for at least five years.

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2011-10-03 13:00:00 © Moneyextra.com